apparently, there hasn't been any discussion on the video clips I have posted quite some time ago. This could have been due to the sheer length of the clips - as a result, it was unable to captivate your interest although I found it interesting how economics concepts could be applied to such a topic.
Nevertheless, I am going to answer the questions that I had posted myself. Here goes:
Economics is not just about money.
The major misconception most students have about economics is challenged by the content of this video clip. Economics is not just about money – and this fact has been demonstrated adequately. To the student of economics, economics should be seen as a social science that studies how individuals and societies allocate scarce resources among alternative uses so as to satisfy their unlimited wants, and this will be the first impression of economics as a subject that this video will help to construct. Even in issues such as teenage dating (as addressed in the video clip), economic concepts will serve to explain human behaviour in a logical manner.
Supply. Demand. Equilibrium.
The laws of supply and demand that ‘govern the lustful desires of teenagers all over
Opportunity cost.
And as far as scarcity is concerned, choices have to be made and an opportunity cost will be incurred. A simple interview (as shown in the video clip) revealed the two main priorities in the life of any average student in Monta Vista as Homecoming approaches – studying for AP (US History) and getting ready for dance. Undoubtedly, the more time spent on dance, the less time can be spent on studying. The opportunity cost incurred for investing too much time in preparation for the dance is, thus, a reasonable score for US History. Apparently, the opportunity cost of partaking in the dance did not coincide with the monetary expenditure involved in preparing for the dance (although in some cases it may) – buying dresses, purchasing new shoes etc. – and this is one of the many key learning points about the opportunity cost that has to be brought across to students.
Scarcity.
Furthermore, the fact that scarcity is not shortage is expounded upon. The fact that despite having sufficient numbers of guys in Monta Vista, the problem of ‘hottie scarcity’ is not solved, and probably will not be solved. The reason is simple – wants versus needs. Needs, in this context, have been defined as ‘an instinctive primal instinct to seek out a mate in order to procreate, thereby leaving their mark on the world’. Wants, on the other hand, are more complex. Girls perceive the more scarce attractive ‘hot’ guys as more desirable even though ‘hotness’ is not a prerequisite for procreation. As a result, scarcity develops, in spite of the absence of shortage. This is yet another vital concept that students must grapple with.
Utility and satisfaction.
Apart from the concept of scarcity, the concept of utility has also been addressed. Defined as the ‘pleasure derived from being in a healthy relationship’, the basic assumption that holds true for the Monta Vista case is that any rational girl will try to maximise her marginal utility, or, in other words, try as much as possible not to date ‘ugly’ guys. However, ‘making out’ has its limits too. Couples may experience a high marginal utility at the beginning of brand new relationship, but ‘the more they got together, the less they enjoy it’, it asserted. This is termed, the concept of diminishing marginal utility – a rather crucial concept students will have to deal with later when faced with the task of analysing consumer choice and behaviour.
Public goods.
Finally, the services of ‘public goods’/normal goods become overstretched as demand for ‘public goods’ hit record highs. ‘Hotties’ labelled as ‘public goods’ become the target of pursuit of many, leaving scores of girls having to resort to ‘inferior goods’ at the same time. This translates conveniently into the scenario where the tragedy of the commons is played out. Most girls will, therefore, prefer ‘private goods’ that involve ‘one person at one time’, since consumption by one consumer prevents the simultaneous consumption by other consumers.
What inspired me most about this video was the realization that economics can and should be related to real life. To me, the value of economics is that it is possible to apply economic knowledge in decision-making so that we may make the most rational/logical decisions.
Of course, sometimes rational/logical decisions may not be ethical decisions. So there is also a need to use a bit of common sense.
Jian Hua
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